26 February 1998 External T.I. 9801535 - DETERMINATION OF RESIDENCY FOR PROVINCIAL TAX PURPOSES

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Taxpayer requesting an opinion on his residency status in order to determine in which province (Quebec or Ontario) he resides for the tax purposes.

Position:

Question of facts. He should contact Revenue Québec.

Reasons: N/A

5-980153
XXXXXXXXXX A. St-Amour, CA

February 26, 1998

Dear Sirs:

Re: Provincial residency status

This is in response to your letter of January 7, 1998, requesting a written opinion as to which province you should file your tax returns for 1994, 1995 and 1996.

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. Where the particular transactions are completed, the enquiry should be addressed to the relevant Tax Services Office. However, we are of the view that it is not the Department's duty to establish the residency for provincial tax purposes. You should contact Revenue Quebec to determine whether or not you are a resident of the province of Quebec. The foregoing comments are, therefore, of a general nature only, and are not binding on the Department

Residency is determined on a year by year basis. In determining the residency status of an individual for a particular year, the facts and circumstances of the individual for that year should be examined thoroughly. The General Income Tax Guide for 1997 (pages 6 & 7) provides information as to which tax package a taxpayer should use to file his/her return. It states that residency is determined by establishing where an individual usually resides. The ordinary meaning of the expression "usually resides" should be used. In order to determine whether or not an individual is a resident of Canada, paragraph 9 of Interpretation Bulletin IT-221R2 (copy attached) lists some factors that may also be relevant for an individual to determine in which province he resides for tax purposes.

As indicated in paragraph 22 of Information Circular 70-6R3 dated December 30, 1996, the above comments do not constitute an advance income tax ruling and are not binding on the Department. We trust the above comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretation Directorate